Vietnam Airlines has officially confirmed an order for 50 Boeing 737 MAX 8 aircraft, aligning with its strategic vision for fleet development and future growth within the aviation industry. This decision represents a significant victory for Boeing within the Vietnamese aviation sector, particularly considering the airline’s preexisting reliance on Airbus aircraft.
In spite of previous concerns and uncertainties, Vietnam Airlines has chosen Boeing over Airbus as its partner in the endeavor to revamp and modernize its narrowbody fleet. This resolute choice underscores the airline’s unwavering commitment to keeping pace with Southeast Asia’s swiftly expanding aviation market.
This momentous order announcement unfolded during a momentous signing ceremony graced by the presence of President Joe Biden, Secretary of State Antony Blinken, distinguished White House officials, and esteemed leaders of the Vietnamese government on Monday, September 11th. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, articulated the significance of this agreement, emphasizing its pivotal role in the airline’s recovery efforts and its optimistic outlook for future prosperity.
According to Mr. Hoa, “In line with Vietnam Airlines’ 2025-2030 fleet strategy and a vision to 2035, aircraft investment is a crucial project that underpins positive recovery momentum and prosperous outlook for the airline. The new narrowbody fleet will allow us to foster our overall development and extend our high-quality service on Vietnam Airlines’ domestic and Asian routes, as well as modernize our fuel-efficient fleet.”
For Boeing, this represents yet another momentous achievement within the Vietnamese aviation market, securing another prominent customer for its flagship 737 MAX narrowbody series. In 2022, the burgeoning low-cost airline, VietJet, entered into a substantial agreement for the acquisition of 200 units of the 737 MAX, with deliveries slated to commence in 2024. This deal stood as a notable victory for Boeing, particularly given VietJet’s existing fleet’s strong Airbus presence.
I would like to let you know that Vietnam Airlines does not operate any Boeing narrowbody aircraft currently. However, it does operate the 787 Dreamliner and has previously operated the 777 and 767 models. Today, the airline predominantly relies on the Airbus A320 family for its narrowbody operations. Brad McMullen, Boeing’s Senior Vice President of Commercial Sales and Marketing, offered his insights on this significant order, highlighting the 737 MAX’s suitability for meeting the growing regional demand in Southeast Asia.
“Southeast Asia is one of the world’s fastest-growing aviation markets, and the 737 MAX is the perfect airplane for Vietnam Airlines to meet that regional demand efficiently. We value our historic partnership with Vietnam Airlines, dating back to 1995 when the airline first leased 767s,” Mr. McMullen stated.
The Decision-Making Dilemma: In 2019, the Vietnamese Ministry of Transport sought additional details from the national carrier regarding its intentions to procure 50 narrowbody aircraft by 2025. Faced with financial challenges, Vietnam Airlines found itself at a crossroads, deliberating between the Airbus A320neo family and the Boeing 737 MAX 8s. The initial plan entailed acquiring these aircraft between 2019 and 2022, with the objective of having them in service by 2025.
These new aircraft were intended to replace 26 of Vietnam Airlines’ existing narrowbody fleet and expand it by at least 24 additional aircraft, with a projection of acquiring approximately four to five units annually. However, the Ministry of Transport expressed dissatisfaction with the airline’s lack of concrete plans for future routes and workforce expansion associated with these aircraft.
Furthermore, the Transport Ministry cautioned the SkyTeam alliance member against procuring the 737 MAX due to uncertainties surrounding the timeline for lifting the aircraft type’s grounding. Vietnam Airlines also received warnings regarding technical issues related to Pratt & Whitney engines used in the Airbus A320neo and A321neo models. Before a decision could be made, the onset of the global pandemic further weakened the airline’s financial standing.
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SOURCE: http://simpleflying.com
